8 Tech Stocks with Biggest Upside Potential According to Analysts

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1) PagSeguro Digital Ltd. (NYSE:PAGS)

Expected Upside Potential: 93.75%

Number of Hedge Fund Holders: 32

PagSeguro Digital Ltd. (NYSE:PAGS) is engaged in the provision of financial and digital payment solutions for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally.

PagSeguro Digital Ltd. (NYSE:PAGS) plans to grow working capital and overdraft products in the coming quarters. The company has been aiming for a credit portfolio increase, with a strong emphasis on the LMEC segment and card-not-present transactions. It has a positive outlook on the roll-out of new products such as multiple cards and multi-acquiring for SMBs. Wall Street expects that investments in customer experience and product development should drive revenue acceleration. PagSeguro Digital Ltd. (NYSE:PAGS)’s payroll loan business remains focused on retirees and FGTS, with an average industry ticket size.

The company is open to market consolidation and acquisitions which complement its ecosystem.  PagSeguro Digital Ltd. (NYSE:PAGS)’s focus on expanding the banking and payments platform led to significant gains in total revenue and net income.  Its total revenue and income sat at R$4,557 million in Q2 2024, reflecting a rise of 19.1% on a YoY basis. This was led by increased revenues in the Payments segment. With the addition of more than 2 million clients and a significant growth in deposits, PagSeguro Digital Ltd. (NYSE:PAGS) continues to strengthen its position in the Brazilian financial technology sector.

Its strategic capital allocation, cost management, new product development, and customer experience enhancements are expected to act as principal tailwinds. The Goldman Sachs Group raised the shares of PagSeguro Digital Ltd. (NYSE:PAGS) from a “Neutral” rating to a “Buy” rating, issuing a $15.00 price objective on 26th June.

While we acknowledge the potential of PAGS as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than PAGS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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